Making a home purchase for the first time is an exciting but daunting process. The important elements involved in obtaining a mortgage include how to choose the best mortgage, the deposit, how much you can borrow, and whether you need a guarantor. Let’s look at these in more details.
Is a fixed or variable mortgage best?
The first step on your journey is understanding the difference between a fixed and a variable product. The interest rate on a fixed-rate mortgage stays the same for a certain period and the payments remains the same for the term. A variable mortgage means that the interest rate can fluctuate, which means your payments could go up or down. The advantage is the prospect of a low monthly repayment; however, if you are nervous about market movement, your best bet is a fixed-rate mortgage.
How much deposit do you need to buy …